The board of Brumby’s Bakeries Holdings Ltd has unanimously recommended a takeover bid by Retail Food Group Ltd.
The cash offer is $3.40 per share for all of the issued capital of Brumbys.
Retail Food Group announced the offer on May 4.
It represents an 88 per cent premium to the Brumby’s closing share price of $1.80 on December 15 last year.
The Brumbys announcement this morning followed an earlier one by the company’s managing director, Michael Sherlock, that he would leave the company, with a decision by a syndicate with which he is involved, BBS, not to compete with the RFG bid.
BBS, also comprising Brumbys’ company secretary Steve Brown and independent director Marcus Barlow, have decided to support the RFG bid, and yesterday sold their 3.91 per cent of the company to RFG.
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